Spokane Estate Tax Lawyer
An estate tax is one that is levied on the value of someone’s property when they pass away, and these assets are transferred to beneficiaries by will, operation of law, or other legal construct. The federal government has established an estate tax, as have many US states including Washington. The threshold amount to trigger the tax is rather high, but wealthy individuals may be paying under both federal and state laws. Therefore, it is critical to leverage all estate planning options to avoid or reduce estate tax implications.
If you are looking into estate planning or need to make changes based upon potential estate taxes, please contact Moulton Law Offices. Our core practice area is estate planning, so we are experienced in developing strategies to minimize taxes and help you protect your wealth. We are happy to set up a consultation with a Spokane estate tax lawyer who will review your circumstances and determine options. You can also read on for a description of how estate planning applies to estate taxes.
Facts to Know About Estate Tax
IRS rules on estate taxes are extremely complicated, and state laws are equally convoluted. However, there are a few points that will help you understand the basics and why an effective estate tax strategy is crucial:
If you own assets valued at $12.92 million or more upon death, your estate will be responsible for paying federal estate tax. However, this amount is doubled for married couples. The tax rate on the estate value ranges from 18 to 40 percent.
Big news for Washington families: starting July 1, 2025, the Washington State estate tax exemption increases from $2.193 million to $3 million. This change, along with new tax rates and adjustments, marks one of the most important estate planning updates in years.
You may also incur estate tax liability in other states if you own real estate or property that is otherwise situated outside of Washington.
Key Highlights of the Washington Estate Tax Changes
Higher Exemption Amount
Estates valued up to $3 million per person will now be exempt from Washington’s estate tax, which is a long-overdue increase from the prior $2.193 million threshold.
Annual Inflation Adjustments
Starting January 1, 2026, the $3 million exemption will increase annually with inflation, helping protect families from future asset growth pushing them over the limit.
Increased Tax Rates for Large Estates
Estates over $3 million face steeper taxes, with a top marginal rate of 35% on estates exceeding $9 million (previously capped at 20%). To see how these increased rates might impact your estate, you can use our Estate Tax Calculator.
Larger Family Business Deduction
The deduction for qualified family-owned businesses rises to $3 million, offering added protection for closely held enterprises.
What This Means for You
Relief for Mid-Sized Estates
Families with estates between $2.2 million and $3 million will no longer owe Washington estate taxes, offering real meaningful tax relief.
Increased Exposure for Large Estates
Families with estates over $9 million will face a significantly higher tax burden due to the increased rates. Strategic planning is essential to preserve generational wealth.
Options to Manage Estate Tax Liability
If you are in a position where estate tax may strike, your planning to minimize or avoid it should start now. Moulton Law Offices can explain the effective option of gifting, in which you reduce the value of your estate through qualifying lifetime gifts. You can gift up to the limits designated by IRS rules, shrinking your net worth so that you stay under the estate taxable threshold.
In addition, our Washington estate tax attorneys can explain options for married couples to take advantage of the exemption amount. We will also advise you on charitable trusts, irrevocable trusts, and family limited partnerships as ways to protect assets and avoid paying costly estate taxes.
Set Up a Consultation with a Spokane Estate Tax Lawyer Today
It is useful to review some basics about using estate planning to minimize estate taxes, but the laws and tax regulations are extremely complex. You can trust Moulton Law Offices to counsel you on options, prepare important paperwork, and assist with essential tasks. Please contact us today to schedule a consultation with a Washington estate tax attorney.
